Wa Gold Limited · ASX:WAU

Wa Gold — Brazilian Metals Group — Investor Presentation (June 2012)

17 slides from Wa Gold's investor presentation, June 2012

  1. Slide 1: Investor Presentation

    Brazilian Metals Group Investor Presentation June 2012 ASX: BMG

  2. Slide 2: BMG Investment Case

    BMG INVESTMENT CASE ATTRACTIVE VALUE PROPOSITION  ASX listing with exposure to Brazilian iron ore sector  Brazilian operating and capital costs for iron ore production are relatively low  Presence of domestic market and existing infrastructure lowers the barriers to commencing production  Attrac

  3. Slide 3: Brazil: Attractive Destination for Resources Investment

    BRAZIL ATTRACTIVE DESTINATION FOR RESOURCES INVESTMENT  World class iron ore province in Minas Gerais, with established steel industry  Accounts for up to 70% of Brazil’s iron ore production – c.390mt in 2011 RIO PARDO  2011 steel production of c.35mt  Stable political system, secure tenure, low

  4. Slide 4: BMG Project Locations

    BMG PROJECT LOCATIONS MG, BRAZIL Existing and proposed 500km rail infrastructure in Minas Gerais (MG) and Porto Sul, Ilheus Bahia (BA) Gema Verde Rio Pardo (460mt) (2-3bnt)* Northern FIOL Rail Minas Gerais Carrapato (50-60mt)* Iron MRS Rail Quadrilateral FIOL Rail to Porto Sul, Ilheus under construc

  5. Slide 5: Carrapato Project Location

    CARRAPATO PROJECT LOCATION SURROUNDED BY LARGE DOMESTIC STEEL INDUSTRY  Significant steel production in the „Iron Quadrilateral‟ region in close proximity to Domestic Steel Mills Carrapato  Established steel industry provides large market for local iron ore sales  Domestic iron ore consumption in

  6. Slide 6: Carrapato Iron Ore Project: Geological Setting

    CARRAPATO IRON ORE PROJECT GEOLOGICAL SETTING Iron deposits hosted by Caue QUADRILÁTERO FERRÍFERO Formation and Gandarela IRON QUADRILATERAL Formation – both itabiritic • canga & detritals 65-67% Fe ARCELOR MITTAL • soft haematite, 65-76% Fe Belo Horizonte Carrapato • hard 67% grade haematite, • fri

  7. Slide 7: Carrapato Iron Ore Project: Project Location

    CARRAPATO IRON ORE PROJECT PROJECT LOCATION  Iron Quadrilateral within existing mining corridor; close proximity to transport infrastructure and domestic steel mills  Vale operating two mines in the Carrapato area - Corrego do Feijao (6.8mtpa) and Jungada Carrapato (5.1mtpa) − Both have stated res

  8. Slide 8: Carrapato Iron Ore Project: Extensively Drilled

    CARRAPATO IRON ORE PROJECT EXTENSIVELY DRILLED  Stage – Advanced; Diamond Drilled – JORC planned within 2 months; Scoping numbers High Grade zone prepared; Pre-Feasibility underway ECE MINE  Size – Exploration Target* of 53 to 62 mt @ 35.2% to 41.1% Fe; includes high grade surface zone of Gandarel

  9. Slide 9: Carrapato Iron Ore Project: Development Plan

    CARRAPATO IRON ORE PROJECT DEVELOPMENT PLAN Period Activities  Complete JORC Resource Estimate INITIAL PHASE  DSO mine design and preliminary feasibility studies (4 – 5 months)  Environmental Report and Plan of Economic Action underway  Domestic off-take agreements and landowner engagement under

  10. Slide 10: Potential Scoping Level Economics

    CARRAPATO IRON ORE PROJECT POTENTIAL SCOPING LEVEL ECONOMICS  Contract mining, third party infrastructure and toll treatment will be used where possible, with multiple options within the region, to minimise capex and fund operations from cashflow  Scoping Study to be undertaken to validate managem

  11. Slide 11: Favourable Acquisition Terms

    CARRAPATO IRON ORE PROJECT FAVOURABLE ACQUISITION TERMS  Exclusive agreement to acquire 100% of the project, subject to due diligence and final documentation  Documentation expected to be completed within 3-4 months  Acquisition price of US$38m (circa US$29m on an NPV basis) with payment terms al

  12. Slide 12: BMG Peer Comparison

    BMG PEER COMPARISON FAVOURABLE COMPARATIVE METRICS IN AN ESTABLISHED NICHE SECTOR BMG SAFM Centaurus Ponto Carrapato1 Verde2 Jambreiro2 Expl. Target* /Resource, Mt 53 – 62* 230.6 116.5 Grade, Fe ~ 40%* 44.5% 26.8% Mass Recovery ~ 50%* 45%-60% 35%-37% Final Product, Mt 21 – 25* ~ 47 - 504 173 Product

  13. Slide 13: BMG's Northern MG Projects

    BMG’S NORTHERN MG PROJECTS MEDIUM TO LONG TERM GROWTH HORIZON  Gema Verde resource of 460 Mt to JORC standard - >85% BMG Rio Pardo Measured and Indicated 2-3Bt  Contiguous with Honbridge Block 8 (2.6Bt resource)  Rio Pardo Exploration Target* of 2 to 3 Bt based on 28 drill holes VALE Nova Aurora

  14. Slide 14: Capital Structure

    CAPITAL STRUCTURE ASX Codes: BMG/ BMGO Ordinary Shares* on Issue: 148 Million Tradeable Options: 137 Million (ex at 20c until 31/03/2014) Share Price: $0.03 (as at 30 May 2012) Market Capitalisation: ~$5m Cash: $0.57m (as at 31 March 2012) Debt: Nil *Escrowed Shares: 72.2 Million 14

  15. Slide 15: Directors

    DIRECTORS Mr. Peter O'Connor – Chairman MA Economics and Political Science, Trinity College, Dublin; called to the Irish Bar, King‟s Inns, Dublin (1964) Mr O'Connor has over 40 years experience in international investment management, and is chairman of a number of publicly quoted investment companie

  16. Slide 16: Directors

    DIRECTORS Mr. Anthony Augustine Trevisan – Non-Executive Director Mr Trevisan has over 30 years corporate experience in the establishment and management of companies, equity and debt financings, mergers and acquisitions, restructuring of mineral resources, petroleum and property based public compani

  17. Slide 17: Disclaimers

    DISCLAIMERS Exploration Results and Mineral Resources The information in this report that relates to Exploration Results, Exploration Targets, Mineral Resources or Ore Reserves is based on information compiled by Malcolm Castle, who is a Member of the Australasian Institute of Mining and Metallurgy

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